Synthetic intelligence development may present a lift to shares of Snowflake , based on Morgan Stanley. The financial institution upgraded the cloud software program maker to chubby from equal weight and elevated its value goal by $62 to $262 — which displays greater than 22% upside from Monday’s shut. The ranking change comes because the inventory has already outperformed the broader market in 2025. Yr up to now, Snowflake has jumped greater than 38%, whereas the S & P 500 has risen greater than 2%. SNOW YTD mountain SNOW, year-to-date “After a number of years of sharply decelerating development and mounting investor considerations on its positioning for AI/ML, Snowflake’s secular development prospects have improved underneath the management of CEO Sridhar Ramaswamy,” analyst Sanjit Singh wrote in a Tuesday notice. “Whereas it’s nonetheless early in AI/ML and within the utility market, infusing AI-based innovation within the core coupled with a rising precedence for patrons to modernize their information infrastructure as a obligatory step to execute on their AI initiatives has resulted right into a stabilization within the core information warehousing enterprise,” he added. Singh mentioned AI will create a protracted development runway within the core information warehousing enterprise and sees market growth into each information engineering and AI offering a compound annual development charge of a minimum of 20% via 2030. The analyst additionally cited different catalysts for positive factors reminiscent of new buyer development and an enhancing AI portfolio. “Now we have recognized massive clients with potential six-figure AI workloads on Snowflake, proving out the product-market match and making us extra assured that Snowflake can hit reported targets of ~$100 million AI run charge by yr finish, organising this a part of the enterprise to contribute meaningfully in FY27 and past,” he wrote. Most analysts are bullish on Snowflake. Forty of fifty analysts masking the inventory have a robust purchase or purchase ranking, based on LSEG information. The typical goal of roughly $229 implies greater than 7% upside. The inventory was nearly 2% greater in premarket buying and selling Tuesday following the improve.
